The March unadjusted Ivey purchasing managers index leaped to a reading of 67.6 from 55.1 in February. Among the components, the employment index slipped from 53.4 in February to 53.2 in March. However, the prices index climbed from 61.2 to 63.0 in March. The inventories index jumped to 61.6 from 51.3 the month before. Finally the supplier delivery index climbed to 51.7 from 44.6.
On a seasonally adjusted basis, the overall index reading for March was 61.1, up from February's 55.0. The employment index eased to 53.9 from 54.5. The prices index reading declined to 57.0 from 61.1. The supplier deliveries index climbed to 49.9, up from 45.9 while the inventories index jumped to 61.7 from 51.4 in the prior month.
The Ivey purchasing Managers' Index (PMI) measures purchasing activity as indicated by a panel of purchasing managers selected geographically and by sector of activity to match the Canadian economy as a whole. The PMI includes both the public and private sectors and is based on month-end data. Five categories are covered in the survey: purchases, employment, inventories, supplier deliveries and prices. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting).
The Ivey PMI is provided in two formats -- unadjusted and seasonally adjusted. The index shows responses to one question: "Were your purchases last month in dollars higher, the same, or lower than the previous month?" A figure above 50 shows an increase while below 50 shows a decrease.
The index measures the month to month variation in economic activity as indicated by a panel of purchasing managers. The index uses end of the month data and it covers all sections of Canada's economy. The PMI includes both the public and private sectors and is based on month end data Ivey PMI panel members indicate whether their organizations activity is higher than, the same as, or lower than the previous month across the following five categories: purchases, employment, inventories, supplier deliveries and prices.